The Lufthansa Group has reported a first quarter 2024 net loss of €734 million or (€0.61) per share on a year-over-year increase in revenue of 5.0 percent to €7.4 billion. The Group’s first quarter earnings were impacted by approximately €350 million due to strikes.
On Tuesday (April 30, 2024), Lufthansa Group reported their first quarter financial results for the period ending March 31, 2024. The Group reported a first quarter net loss of €734 million or (€0.61) per diluted share on a 5.0 percent year-over-year increase in revenue to €7.4 billion. Lufthansa Group’s first quarter revenue per available seat kilometer (RASK) declined 6.3 percent versus Q1 2023, while cost per available seat kilometer (CASK) increased 2.9 percent versus the same period last year.
In Thursday’s announcement, Deutsche Lufthansa AG’s Chairman of the Executive Board and CEO, Carsten Spohr, said,
“We are now leaving the first quarter behind us, which was mainly impacted by strikes, and are at a turning point. We have reached long-term wage agreements for the majority of our employees. This means planning certainty and clarity for the coming years. We are still seeing strong demand, which is even significantly higher than last year for the summer. We are therefore continuing to expand our offering and are growing on long-haul routes in particular. Our planes remain well filled throughout. One thing is already clear: it will be another very strong summer. I am particularly pleased that we are continuing to see a positive trend not only among leisure but also business travelers. We are now devoting all our energy to further expanding our premium customer offers and ensuring punctual and reliable flight operations.”
Also commenting on the Group’s Q1 financial results, Deutsche Lufthansa AG’s Chief Financial Officer, Remco Steenbergen, said,
“We cannot be satisfied with the operating result for the first quarter; at more than 350 million euros, the various strikes had a significant impact on our result. Nevertheless, cash flow was positive due to the continuing high demand for air travel. We were also able to further strengthen our balance sheet. In the coming months, we will work intensively to compensate for the effects of rising costs. We have taken additional measures to this end, particularly at Lufthansa Airlines, which is significantly affected by rising personnel expenses and fees. I therefore remain convinced that we will be able to achieve stable unit cost development for the year as a whole without taking the strikes in the first quarter into account.”
Lufthansa Technik’s first quarter revenue grew 15 percent year-over-year to €1.8 billion on higher demand for MRO services and other products. Lufthansa Cargo achieved an Adjusted EBIT of (€22.0) million, down from €151 million during the first quarter of 2023. The Group further strengthened their balance sheet in the first quarter, with a net debt reduction to €5.5 billion, down from €5.7 billion at December 31, 2023. Individual first quarter 2024 results for select Lufthansa Group airlines are available here: Austrian Airlines, Brussels Airlines, SWISS.
Lufthansa guests can now enjoy the new Allegris travel experience on long-haul routes, which will be offered on select regularly scheduled flights from May 1st, 2024. The first Allegris-equipped Airbus A350-900 will fly from Munich to Vancouver, followed by service to Toronto, which will operate alternately with Vancouver during the first few months. As additional new A350s are delivered this summer, Allegris will be available on select flights to Chicago and Montreal as well.
Source: Lufthansa Group